This bill introduces a cost of living adjustment (COLA) for retired members of the New Hampshire retirement system who have been retired for at least 60 months as of July 1, 2025. The new section, RSA 100-A:41-f, specifies that these retirees or their beneficiaries will receive a supplemental allowance of 1.5% of their annual retirement allowance, capped at the first $50,000, starting on the first anniversary date after July 1, 2026. The funding for this supplemental allowance will be sourced from the state annuity accumulation fund, and it will become a permanent addition to the beneficiary's base retirement allowance.

The bill does not authorize new funding or positions but estimates an expenditure impact of $1,570,000 for the state in FY 2028 and $6,620,000 for political subdivisions in the same fiscal year. The actuarial analysis indicates that the proposal will increase the actuarial accrued liability by approximately $100.7 million, which will be amortized over a period not exceeding 20 years. The bill is set to take effect on July 1, 2025, and includes no deletions from current law.